Stock Markets Exposed

Will gains made by an NRI (USA) in the Indian stock market be taxed in India and in the USA?

Someone told me that gains on indian stocks that have been held for over 3 years are not taxed in India. Is this true? In this case, will the gains be taxed in the USA?

Public Comments

1. As an NRI, your Indian income is taxable in India. I think it is not necessary to show your Indian Income at USA, if you are not a US citizen. Still you may contact some one for help in this connection- USA taxation. I again think that you have to pay tax on your USA income in USA (if you are not a US citizen). Now since from 3 years, If the shares were held for more than 12 months and sold through stock exchanges in India, then they are treated as long term capital gains and it is tax free income. If the shares were sold before 12 months, then it will be treated as short term capital gains and attracts 10% Tax. Even NRI will get tax exemption like Indian Resident. You can read the pages from the below website to know more about NRI taxes in India. http://www.nritaxservices.com/tax_rtns.htm US taxation for Non citizens: (University web site- This is not only for students) http://www.hio.harvard.edu/students_scholars/newcomers.php
2. read this... http://www.nriaccount.com/nri-taxes-india/double-tax-treaties/